All Asian markets felt the heat as central bankers continue to give hints that inflation remains a concern. Japan, Mainland China and Hong Kong closed in the red. European markets were trading flat in the morning.
Indices tank on Friday and Sensex and Nifty closed below 60,000 and 18,000, respectively.
Indian investors felt the pressure from global negative cues as central bankers continue to maintain a hawkish stance on inflation and future rate hikes. Benchmark indices tumbled in today’s trading with all sectors getting affected.
Sensex tanked almost 1000 points to close the day below 60,000, at 59,845. Nifty closed below 18,000 to end at 17,806, a drop of 320 points.
All sectors ended in the red with PSU Bank sliding by 6%, Media by 5%, Metal and Energy by around 4%. Pharma and Healthcare were the only indices which shed less than a per cent.
Adani Ports fell 7% followed by Adani Enterprises which dropped 5.6%. Hindalco and Tata Steel were other major draggers, each down by around 5%. Cipla, Divi’s Lab and Titan ended in the green with minor gains.
Three companies debuted on bourses today with Dronacharya listing at around 90% premium, while Abans Holdings and Landmark Cars had a muted debut.
Most of the Asian indices languished amid worries about continued policy tightening at the US Federal Reserve and other major central banks that could trigger a recession.
Japan’s Nikkei share average ended lower on Friday and posted its biggest weekly drop since mid-June, with chip-related stocks leading the day’s decline. The Nikkei ended the day 1.03% lower at 26,235.25, taking its weekly decline to 4.69%.
China stocks ended lower as soaring COVID cases disrupted economic activity and dented investor sentiment. China’s blue-chip CSI 300 Index closed down 0.2%, while the Shanghai Composite Index declined 0.3%. Hong Kong’s Hang Seng Index lost 0.4%, and the Hang Seng China Enterprises Index declined 1.1%.
European shares were flat on Friday, with the weakness in some luxury firms and tech stocks offset by gains in healthcare companies. The region-wide STOXX 600 index closed down 1% on Thursday
Google approaches NCLAT against CCI’s order on Android
Google has approached the appellate tribunal NCLAT challenging the CCI’s order on unfair business practices in Android mobile device ecosystem, the company spokesperson said on Friday.
The Competition Commission in October slapped a steep penalty of ₹1,337.76 crore on internet giant Google for abusing its dominant position in multiple markets in relation to Android mobile devices and ordered the internet major to cease and desist from various unfair business practices. (Read More)
Gandhar Oil Refinery files IPO papers with Sebi
Gandhar Oil Refinery (India) Limited has filed preliminary papers with the capital markets regulator Sebi to raise funds through an initial public offering (IPO).
The IPO comprises fresh issue of equity shares worth ₹357 crore and an offer for sale (OFS) of 1.2 crore by promoters and existing shareholders, according to the draf red herring prospectus (DRHP).
Fundraising through the OFS component is expected to be ₹500 crore, market sources said.
Those offering shares in the OFS include promoters Ramesh Babulal Parekh, Kailash Parekh and Gulab Parekh and other shareholders, Fleet Line Shipping Services LLC, IDFC First Bank Limited, Denver Bldg Mat & Décor TR LLC and Green Desert Real Estate Brokers. (PTI)
All sectoral indices turn red towards the end as Nifty tanks 300 points. PSU Bank down 5%
India’s economic growth ‘extremely fragile’, needs all support: RBI MPC member
India’s economic growth is now ‘extremely fragile’ and needs all the support that it can get, as private consumption and capital investment are yet to pick up, said RBI Monetary Policy Committee (MPC) member Jayanth R Varma on Friday.
He said that exports and government spending supported the Indian economy through the pandemic, and now other engines of growth, i.e, private consumption and capital investment need to pick up. (Read More)
Tata Power gets ₹450 crore sustainable trade finance facility from Japan’s MUFG
Japan’s MUFG Bank on Friday announced that it has executed a ₹450 crore sustainable trade finance facility for Tata Power, the company said in a statement. MUFG extended this financing to fund the procurement of TP Kirnali Limited or TPKL’s two solar power projects – a 100 MW project in Parthur, Maharashtra and a 120MW project in Mesanka, Gujarat – under documentary trade finance.
Incorporated in 2020, TPKL is a 100% owned subsidiary of Tata Power Renewable Energy Limited (TPREL), a clean energy platform. (Read More)
JM Financial Institutional Securities on Indian Banking and Healthcare sector
Indian Banking Sector | Microfinance: Coming out of the woods, gradually: During 2QFY23, unique borrowers sharply increased to 62mn (vs. 60mn as of 1QFY23), this can be a result of: i) revised norms helping inclusion of new borrowers, ii) increased confidence on cashflows and borrowers’ ability to pay as economy has gradually picked up post Covid. Avg. loan size is fairly stable since 3QFY22, thus lenders are reducing concentration risks emanating from large ticket sizes. Banks’ share in micro-credit loan o/s declined to 38% now (vs. 40% as of FY20), primarily owed to the diversification by major players such as Bandhan (MFI loan mix: 56% now vs. 64%, as of FY20), whereas NBFC-MFIs expanded market share to 37% (vs. ~32% as of FY20). DPD across the buckets inched-up QoQ which can be on account of reluctance in loan renewals by various lenders, as we highlighted in our on-ground checks report. Additionally, floods in some regions, mainly Assam, have also exacerbated the asset quality. Going forward, we believe these trends should improve in light of self-correcting mechanism by various players and place the sector on a strong wicket. Given the reduction in cyclicality and amplifying resilience, we maintian BUY on CREDAG and Bandhan.
India Healthcare | US Rx Trends: DRRD’s Revlimid windfall; Tamiflu volumes surge: The US Rx Trends are encouragingly in Indian generics’ favour with gRevlimid, Sun’s specialty portfolio and strongest flu season in the last few years driving Oseltamivir sales for the participants. DRRD’s gRevlimid will once again be in the limelight as they have now captured ~23% market share (‘ms’). Sun’s specialty portfolio (Ilumya trending upwards, Winlevi flattish, Levulan gaining momentum) should sustain USD 200mn+ run-rate going ahead. LPC has garnered 44% ms in gSuprep which, along with Tamiflu tailwinds, will drive higher US sales. Other than LPC, we expect gTamiflu sales to benefit ALPM, ZYDUSLIF, Natco-Alvogen (biggest beneficiary) and Ajanta Pharma (Not rated). BIOS’ Semglee and Fulphila continue marching upwards while Ogivri is yet to conquer its previous highs. Natco-Breckenridge have been gaining ms in Everolimus whilst Revlimid share (of Teva) has come down to ~11%. Cipla’s Lanreotide is ramping up well (now trending at ~14% ms). Overall, we expect a meaningfully better performance QoQ for DRRD and LPC for their US generics business. BIOS’ biosimilars sales will significantly improve sequentially on account of higher EM revenues, Serum vaccine contribution and Viatris revenues wef Dec’22. The pace of ANDA approvals have been modest in the last 2 months; US FDA inspections are in full swing with more site clearances expected to improve the pace of approvals beyond the holiday season.
Oil & Gas puts a huge drag on the market, sheds 3.5% with all the stocks in red
Facebook parent Meta to settle Cambridge Analytica scandal case for $725 million
Facebook owner Meta Platforms Inc has agreed to pay $725 million to resolve a class-action lawsuit accusing the social media giant of allowing third parties, including Cambridge Analytica, to access users’ personal information.
The proposed settlement, which was disclosed in a court filing late on Thursday, would resolve a long-running lawsuit prompted by revelations in 2018 that Facebook had allowed the British political consulting firm Cambridge Analytica to access data of as many as 87 million users. (Read More)
Adani Enterprises sheds sharply, down 4%
Oil Pushes Higher as Russia May Cut Output in Response to Cap
Oil headed for a substantial weekly gain as Russia said it may cut crude production in response to the price cap imposed by the Group of Seven on its exports, highlighting risks to global supplies in the new year.
West Texas Intermediate climbed above $78 a barrel, set for a gain of more than 5% this week even as concern flared over near-term demand in China and US data reinforced prospects for more rate hikes. Russian may reduce output by 500,000 to 700,000 barrels a day in response to the cap, Deputy Prime Minister Alexander Novak said, according to the state-run Tass news service.
Oil has rebounded since hitting a one-year low earlier this month despite concerns that the US and Europe may sink into recession next year. As the war in Ukraine grinds on, traders have been waiting for Moscow’s full response to the cap, a policy that imposed a $60-a-barrel ceiling on Russian flows in a bid to reduce its income while keeping exports on the market. President Vladimir Putin said on Thursday that he would sign a decree on the nation’s reaction to the limit on Monday or Tuesday containing “preventive measures”. (Bloomberg)
Axiscades Tech completes ₹296-crore acquisition of Mistral Solutions
IT firm Axiscades Technologies announced on Friday that it completed the acquisition of Mistral Solutions. The acquisition, initiated in the year 2017, was executed over four phases at an aggregate acquisition cost of ₹296 crore.
The statement shared with exchanges by the IT firm said Mistral Solutions is one of the leading players in semiconductor, embedded electronics, defence and product engineering capabilities.
With the completion of this acquisition, Axiscades said it strengthened its position as a technology leader, providing the latest product design and development services to its customers for a wide range of applications. (ANI)
Finmin asks banks not to use unethical practices to sell insurance policies
Concerned over rising incidence of mis-selling, the finance ministry has directed heads of public sector banks to put in place strong mechanisms to avoid unethical practices for selling insurance policies to customers.
The Department of Financial Services has received complaints that fraudulent and unethical practices are adopted by banks and life insurance companies for procuring policies from the bank customers, a letter addressed to chairpersons and managing directors of public sector banks said.
There have been instances where life insurance policies were sold to customers aged above 75 years in Tier II-III cities. Usually, branches of the banks push products of their subsidiary insurers. (PTI)
Flipkart completes full separation of PhonePe
Flipkart and PhonePe today announced the full ownership separation of PhonePe, India’s largest digital payments platform. Establishing these businesses as individual entities will allow both to chart their own growth paths, as they continue building industry-leading offerings that provide access and inclusion for Indians.
The PhonePe Group was acquired by the Flipkart Group in 2016 and is one of India’s largest digital payments platform. The company builds products and offerings tailored to the Indian market, and with over 400 million registered users, more than one in four Indians are now using PhonePe. Since its launch, PhonePe has successfully digitized more than 35 million offline merchants spread across Tier 2, 3, 4 cities and beyond, covering 99% of pin codes in the country. (Read More)
Policybazaar shares down 52% in 2022. Edelweiss initiates coverage with ‘Buy’ rating
Online financial products is an exciting space, and Policybazaar (PB) has carved out a niche for itself thereof, said domestic brokerage and research firm Edelweiss, adding that low digital sales and insurance penetration underpin its growth conviction on this incipient segment.
“PB’s strategy of investing in alternate channels-appointments and POSP, not only augurs sustained volume uptick, but also fortifies its bargaining power. Ascending renewals, efficiencies, and unit economics lie at the heart of PB’s improving profitability,” the note stated. (Read More)
Media index trades significantly lower as it sheds 3% with all stocks in red
Lithium-ion battery recycler Lohum plans to expand international presence
Lithium-ion battery recycler Lohum Cleantech is looking at expanding its international presence and setting up a plant in the US within the next one year. In an interview, Rajat Verma, CEO, Lohum Cleantech, said that, the company also plans to expand its presence in the European Union.
“We will continue to add to our capacity in India, and also invest in the US and EU to cater to the global EV ecosystem. Our immediate target is to set up a facility in the United States for upstream capacities. That facility will work on the hub and spoke model where the US becomes a spoke feeding into the Indian hub,” he said. (Read More)
Anand Rathi recommendations on Arvind Fashions: BUY rating
Arvind Fashions- Focusing on execution; maintaining a Buy
On completing its business reset in FY20-FY21, Arvind Fashions saw an upswing in the last four quarters; we expect the pace to accelerate. While growing 12-15% in the next 3-4 years it expects a double-digit EBITDA margin (pre-Ind AS) in 18 months. Revenue growth would be driven equally by like-to-like growth and store expansion, margin expansion by efficiencies as brands gain scale and on the Arrow turnaround. Management says it will focus on scaling up existing brands profitably and is not looking at adding brands. We expect its ~Rs3.8bn net debt to shrink to ~Rs1.3bn by end-FY25. We are positive on the stock and see a further re-rating, driven by a better sustainable performance. We retain our Buy rating at a higher TP of Rs567, based on 12x FY25e EV/ EBITDA (previously Rs516, at 11x FY25e EV/EBITDA).
Valuation- We retain our Buy rating with a TP of Rs567 based on 12x FY25e EV/EBITDA as we are gaining confidence on its execution. Risks: Keen competition; lower revenue growth.
Indices come under tremendous pressure on Friday as Sensex struggles around 60,000 and Nifty below 18,000
All sectoral indices are in red with PSU Bank, Metal and Media shedding the most
Mapletree Investments Acquires KSH Infra’s logistics asset
Mapletree Investments has acquired the remaining assets of a logistics park owned by KSH Infra Industrial Park Pvt Ltd, a subsidiary of Pune-based KSH Infra Group, for around ₹320 crore (around $38.7 million), concluding the full acquisition of the 1.2 million sq ft park.
Singapore-based Mapletree concluded the acquisition in two tranches. In the first tranche, it had part-funded the equity requirement for the park’s development in June 2020. (Read More)
Indian EV maker denies allegations of misappropriation of incentives
India’s Avon Cycles Ltd has denied any wrongdoing in a scheme granting subsidies to vehicle manufacturers to boost the sale of electric vehicles (EV), after the government said the company was among those being investigated for misappropriation.
The Indian government is reimbursing electric vehicle and hybrid vehicle manufacturers for reducing the purchase price of their vehicles under the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) programme.
Complaints were made against 12 electric vehicle and parts manufacturers, including Avon Cycles, for violating guidelines under the 100 billion rupees ($1.21 billion) programme, Minister for Heavy Industries Mahendra Nath Pandey told parliament on Tuesday. (Reuters)
Yes Bank share price dips 25% after hitting 52-week high. Good time to buy?
Yes Bank share price has been in a downtrend after hitting a fresh 52-week high of ₹24.75 apiece on 13th December 2022. In the last ten days, Yes Bank shares have fallen to the tune of ₹18.20 per share on NSE, logging more than a 25 per cent dip after climbing to its 52-week peak. Yes Bank share price today opened downside and went on to hit an intraday low of ₹18.20 apiece on NSE, logging around 4 per cent intraday dip against its Thursday close of ₹18.95 on NSE.
According to stock market experts, this dip in Yes Bank share price can be a big opportunity for high-risk traders and investors as the stock has fallen due to weak Dalal Stree sentiments. They said that Yes Bank shares have managed to improve its financials in recent years, especially after the handover of its management to the State Bank of India (SBI). They said that Yes Bank’s share price is close to its lower support of ₹18 and ₹18 to ₹19 is a good accumulation zone for high-risk investors. They advised positional investors to buy Yes Bank at current levels for a medium-term target of ₹34 apiece. (Read More)
Droneacharya Aerial shares hit upper circuit after listing at 90% premium
Shares of Droneacharya Aerial Innovations Ltd had a dream debut on Dalal Street today. The SME IPO listed on theBSE SME exchange at ₹102 apiece, around 90 per cent higher than its issue price of ₹52 to ₹54 apiece.
After opening at ₹102 apiece on the BSE SME exchange, Droneacharya Aerial Innovations share price went on to hit an intraday high of ₹107.10 apiece, hitting 5 per cent upper circuit, whereas it made anintraday low of ₹96.90 apiece. Currently, Droneacharya Aerial Innovations shares are quoting at ₹107.10 apiece level. (Read More)
Adani Ports tanks in today’s trading, among one of the biggest laggards, sheds 3.5%
Rupee trades flat against US dollar amid weak stocks, firm crude oil
The rupee on Friday traded flat against the US currency in early trade amid steep losses in the domestic equity markets and firm crude oil prices.
A weak US dollar against leading world currencies and forex inflows aided the sentiment but recession fears after US jobless data weighed on the local unit, forex dealers said.
At the interbank foreign exchange market, the rupee opened marginally down by 2 paise at 82.81 against the previous close of 82.79.
The local unit moved in a narrow range of 82.82 and 82.77 in morning trade. It was trading flat at 82.79 against the US dollar at 0950 hrs.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, dropped 0.10 per cent to 104.33. (PTI)
Elon Musk says ‘will not sell’ more Tesla stock for another 2 years
Tesla Chief Executive Officer Elon Musk said on Thursday said that he will not sell any more Tesla shares for about two years. While speaking in a Twitter Spaces audio chat, Musk said he foresees the economy will be in a “serious recession” in 2023 and demand for big-ticket items will be lower.
“I won’t sell stock until I don’t know probably two years from now. Definitely not next year under any circumstances and probably not the year thereafter,” Musk said.
Shares of Tesla rose 3 percent to $129.23 in after-hours trading on Thursday following an 8.9 percent drop in regular trading hours. (Read More)
PSU Bank tanks in today’s trading, down almost 4% with all stocks in red
NSE to set up Social Stock Exchange (SSE) as a separate segment
The National Stock Exchange of India (NSE) received in-principle approval from market regulator Securities Exchange Board of India (SEBI) on December 19, 2022, to set up a Social Stock Exchange (SSE) as a separate segment of the NSE.
Finance Minister Nirmala Sitharaman, in her Union Budget speech of 2019-20, had proposed creation of a Social Stock Exchange, under the regulatory ambit of SEBI for listing social enterprises and voluntary organizations working for the realization of a social welfare objective, so that they can raise capital as equity, debt or as units like a mutual fund (MF). (Read More)
Gold prices in India fall for second day after rising to 9-month highs
Gold prices fell today for the second day in Indian markets, after hitting a nine-month high earlier this week. On MCX, gold future were down 0.12% to ₹54,440 per 10 gram, off nearly ₹1,000 from its nine-month high of ₹55,250, hit earlier this week. Silver future rose 0.3% to ₹68,750 per kg. In global markets, sport gold was flat as traders remained cautious ahead of US economic data due later in the day to gauge the Federal Reserve’s rate hike stance. (Read More)
Godrej Properties eyes ₹3,000 cr sales revenue from 14-acre new land in Gurugram
Godrej Properties is expecting around ₹3,000 crore in sales revenue from the development of a new housing project in Gurugram.
In a regulatory filing, the company said it has “entered into an agreement for the development of 14.27 acres of land in Gurugram, Haryana.”
The development will comprise predominantly premium residential apartments.
The proposed development on 14.27-acre land will have an estimated revenue potential of about ₹3,000 crore, it said.
Godrej Properties is expanding aggressively to encash the rise in housing demand. It is acquiring land outrightly and also entering into partnerships with landowners to develop new projects. (PTI)
Pharma/healthcare sectors remains the only index to have gained in today’s session and Divi’s Lab leads the index’s rally
Abans Holdings shares rise on market debut; Landmark Cars shares make tepid debut as stock lists at discount
Shares of Abans Holdings made a positive debut as the stock listed on Friday at ₹273 on the NSE, a premium of a per cent as compared to its IPO issue price of ₹270. On the BSE, the stock started trading at ₹270 per share. (Read More)
Shares of Landmark Cars made their market debut on Friday with the stock listing at ₹471 apiece on the NSE, a discount of more than 7% as compared to its IPO issue price of ₹506 per share. On the BSE, Landmark Cars shares started trading at ₹471 apiece. (Read More)
Goldman Sachs, Jupiter India Fund buy stake in Sula Vineyards
After a flat debut on Thursday, Sula Vineyards share price settled at ₹329.90 apiece on NSE, nearly 7 per cent lower than its upper band of ₹357 per equity share. However, some FIIs saw this tepid Sula Vineyards listing as an opportunity to invest in the brewery company. Goldman Sachs and Jupiter India Fund bought Sula Vineyards shares after the muted debut of the winemaker and seller company’s stock on Indian bourses.
As per the NSE bulk deals available on the official website of NSE, Goldman Sachs India Equity Portfolio bought 6,95,864 Sula Vineyards shares on Thursday’s session paying ₹351.48 apiece. This means Goldman Sachs invested ₹24,45,82,278.72 or nearly ₹24.45 crore in Sula Vineyards Limited after listing on December 22, 2022. Likewise, Jupiter India Fund bought 6,32,155 Sula Vineyards shares paying ₹361 apiece. This means Jupiter India Fund invested ₹22,82,07,955 or around ₹22.82 crore in Sula vineyards Ltd. So, these two foreign institutional investors (FIIs) have pumped ₹47.27 crore on day one of Sula desk. (Read More)
Elin Electronics IPO subscribed over 3 times. Check GMP, share allotment, listing date details
The Initial Public Offer (IPO) of electronics manufacturing services company Elin Electronics was subscribed 3.09 times on the last day of subscription that was open from Tuesday, December 20 till Thursday, December 22, 2022. The public issue received bids for 4,39,67,400 shares against 1,42,09,386 shares on offer.
As per market observers, Elin Electronics shares are commanding a premium (GMP) of ₹2 in the grey market today. The shares of the company are expected to make its market debut on stock exchanges next week on Friday, December 30, 2022. (Read More)
Auto index falls sharply as all stocks in the index go red
India, Bangladesh to soon start talks for free trade pact. Details here
With an aim to boost two-way commerce and investments, India and Bangladesh on Thursday agreed to start negotiations for a free trade agreement at an early date. The decision was taken in a meeting between Commerce and Industry Minister Piyush Goyal and his Bangladeshi counterpart Tipu Munshi.
A joint feasibility study on the agreement, officially dubbed the Comprehensive Economic Partnership Agreement (CEPA), has been carried out after the two countries agreed to explore the possibility of negotiating a trade pact, as per PTI reports. (Read More)
Tata Motors sheds at open and is among the biggest laggards; drops 2%
China’s stretched health system braces for peak in COVID infections
China is expecting a peak in COVID-19 infections within a week, a health official said, with authorities predicting extra strain on the country’s health system even as they downplay the disease’s severity and continue to report no new deaths.
In the face of a surging outbreak and widespread protests against its “zero-COVID” regime of lockdowns and testing, China began dismantling it this month, becoming the last major country to move towards living with the virus.
Its containment measures had slowed the economy to its lowest growth rate in nearly half a century, jamming global supply chains and trade. As Chinese workers increasingly fall ill, more disruption is expected in the short term before the economy bounces back later next year. (Reuters)
Indices fall sharply at open with Sensex going below 60,500 and Nifty below 18,000
Reliance Securities Stock to Focus for Today: GPIL
STOCK IN FOCUS
GPIL (CMP 347): We have a positive stance on GPIL considering a) strong demand domestically for the company’s high-grade pellets that command a premium over other makers and b) debt-free balance sheet. By FY24E, GPIL is slated to have net cash to the tune of Rs15bn. We have a BUY rating on GPIL, with a 12-month SOTP-based Target Price of Rs415.
ASIANPAINT (PREVIOUS CLOSE: 3,089) BUY
For today’s trade, long position can be initiated in the range of Rs3,065- 3,045 for the target of Rs3,130 with a strict stop loss of Rs3,014.
SHREECEM (PREVIOUS CLOSE: 23,790) BUY
For today’s trade, long position can be initiated in the range of Rs23,580- 23,460 for the target of Rs24,210 with a strict stop loss of Rs23,190.
BATAINDIA (PREVIOUS CLOSE: 1,647) BUY
For today’s trade, long position can be initiated in the range of Rs1,630- 1,620 for the target of Rs1,675 with a strict stop loss of Rs1,602.
INDIA BONDS-Bond yields likely to rise ahead of weekly debt auction
Indian government bond yields are expected to rise at open on Friday, ahead of a fresh supply of debt through weekly auction later in the day.
The benchmark 10-year yield is likely to move in a 7.30%-7.34% band till the auction, a trader with a private bank said. The yield rose to end at 7.3164% on Thursday, its highest since Nov. 21.
New Delhi aims to raise 280 billion rupees ($3.38 billion) through sale of bonds, which includes 120 billion rupees of the benchmark bond.
“Sentiment is turning cautious as we move closer towards the year-end, and we may see some impact on demand at the auction today,” the trader said. (Reuters)
Sensex fall sharply at the preopen session; Landmark Cars and Abans Holdings to debut on the bourses today
Japan’s Nikkei slips as chip stocks weigh, set for worst week since June
Japan’s Nikkei share average dropped on Friday and headed for its worst week since mid-June, with chip-related stocks leading the day’s decline in line with a slump on Wall Street overnight.
Shippers and other economically sensitive stocks also languished amid worries about continued Federal Reserve policy tightening that could trigger a recession.
The Nikkei dropped 1.12% to 26,210.69 as of the midday break, while the broader Topix lost 0.67% to 1,895.30. Of the Nikkei’s 225 components, 175 fell, 42 rose and eight were flat.
Utilities were a bright spot, with Tokyo Electric Power Company Holdings (TEPCO) surging 6.21% to become the Nikkei’s best performer, after the Japanese government adopted a new policy promoting greater use of nuclear energy. The Topix’s electric and gas subsector rallied 2.66%. (Reuters)
Buy or sell: Vaishali Parekh recommends 2 stocks to buy today
Vaishali Parekh of Prabhudas Lilladher has recommended two stocks to buy today. Here we list out full details in this regard:
1] Lupin: Buy at ₹766, target ₹787, stop loss ₹755; and
2] REC: Buy at ₹112, target ₹117, stop loss ₹110. (Read More)
Geojit Financial Services on today’s market: There is an element of overreaction in the market to the Covid news
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: An interesting development in the market is that despite FII and DII buying of ₹928 and ₹2206 crores respectively yesterday Nifty corrected by 71 points. This is due to long unwinding in some key index stocks. The global market backdrop continues to be weak due to the strong economic data from the US. The paradox of good economic news turning out to be bad news for markets is playing out. Data from US on consumer confidence, jobless claims, and Q3 GDP numbers surprised on the upside indicating continuation of the hawkish monetary stance from the Fed. The high market volatility of the last 6 days is likely to continue. There is an element of overreaction in the market to the Covid news. Even though a ‘Santa Claus rally’ appears unlikely, investors can buy high-quality stocks in telecom, banking and capital goods on dips.
IFCI shareholders approve raising up to ₹1,000 cr
Infrastructure term lender IFCI Ltd on Thursday said its shareholders have okayed a proposal to raise up to ₹1,000 crore through bonds and other instruments.
The resolution was passed at the company’s annual general meeting (AGM) held on Thursday.
The shareholders authorised the board of directors to raise funds, including via bonds and non-convertible debentures, through private placement in one or more tranches, up to the amount of ₹1,000 crore, IFCI said in a regulatory filing. (PTI)
Cryptocurrency prices today: Bitcoin flat; dogecoin, Cardano, XRP surge
In cryptocurrencies, Bitcoin price today dropped with the world’s largest and most popular digital token trading almost flat with a negative bias at $16,810. The biggest token is down by three-quarters from its record high of $69,000. The global cryptocurrency market cap today remained below the $1 trillion mark, as it was almost flat in the last 24 hours to $845 billion, as per the data by CoinGecko.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second-largest cryptocurrency, was almost flat at $1,220. Meanwhile, dogecoin price today was trading about a 5% higher at $0.07 whereas Shiba Inu was up at $0.000008. (Read More)
Stocks to Watch: Landmark Cars, Abans Holdings, Reliance, Yes Bank, JK Cement, Bank of Maharashtra, IFCI, Ramco Systems, Mahinidra Lifespace Developers, and Ajanta Pharma
NSE continues to keep Indiabulls Housing Finance on the list of banned securities under the F&O segment for Friday trading as it has crossed 95% of the market-wide position limit. (Read More)
LIC’s raises its stake in Info Edge crosses 5% mark through an open market deal
The Indian state-owned insurance group and investment company, Life Insurance Corporation (LIC) has announced today that its shareholding in Info Edge (India) Ltd has increased from 64,43,921 to 64,69,921 equity shares increasing its shareholding from 4.988% to 5.008% of the paid-up capital of the said company. LIC said through open market purchase, its holding in Info Edge crossed 5% on 21.12.2022 and the acquisition of shares was done at an average cost of ₹4790.76.
With an additional investment of more than ₹12 crore, LIC claimed that its shareholding in Info Edge has risen to 5%. For ₹12.45 crore, an additional 26,000 shares of Info Edge were acquired. Info Edge is India’s premier online classified company with a business portfolio of brands like naukri.com, 99acres.com, jeevansathi.com as well as shiksha.com. (Read More)
JK Cement enters paint segment, acquires 60 pc stake in Acro Paints in ₹153-cr deal
JK Cement on Thursday announced its foray into the paints business by acquiring a 60 per cent stake in Rajasthan-based Acro Paints in a ₹153 crore deal.
Its wholly-owned subsidiary JK Paints and Coatings Ltd has entered into a share purchase agreement with Acro Paints Ltd and its shareholders to acquire a 60 per cent controlling stake in the company.
The “remaining 40 per cent shall be acquired over a period of 12 months as per the definitive agreement entered between the parties”, a joint statement said.
Acro Paints is a manufacturer of architectural and high-performance paints and coatings.
“This acquisition is a step towards fast-tracking JK Cement’s entry into the paints business, expanding its product offerings and potentially foray into new markets,” it added. (PTI)
Reliance Jio arm deposits ₹3,720 crore in escrow account to acquire Reliance Infratel assets
A subsidiary of billionaire Mukesh Ambani’s Reliance Jio has deposited ₹3,720 crore in an escrow account to acquire assets of Reliance Infratel. The move follows the National Company Law Tribunal’s approval and directions issued last month.
According to people in the know, the India’s largest carrier has deposited the amount in an escrow account with the State Bank of India as of Thursday.
With this, Jio will have completed the acquisition of Anil Ambani-managed Reliance Communications’ tower and fibre assets that were housed under Reliance Infratel. The assets include over 43,500 towers and over 170,000 km of fibre. (Read More)
Radiant Cash Management IPO: Key things to know as issue opens today. Should you subscribe or skip?
The three-day-long initial public offer (IPO) of Radiant Cash Management Services will open for public subscription from Friday, December 23, till Tuesday, December 27, 2022. The company has fixed a price band of ₹94 to ₹99 a share for its ₹388-crore initial share sale.
Radiant Cash Management IPO comprises a fresh issue of shares worth up to ₹60 crore and an offer for sale (OFS) of 33,125,000 shares by promoter David Devasahayam and private equity firm Ascent Capital Advisors India.
“The Retail Cash Management (RCM) market will be bolstered by the growth in organized retail sector and the corresponding outsourcing potential. Radiant also has ability to cross sell value-added services such as network currency management and cash processing services. Based on FY22 earnings the company is valued at 27.8x P/E, 17.2x EV/EBITDA and 3.5x EV/Sales,” said Reliance Securities. (Read More)
Tesla share price drops 10%, on track for worst month ever
Tesla Inc shares are on track for their worst month ever as a sell-off deepened on Thursday over worries about softening demand for electric cars and Chief Executive Elon Musk’s distraction with Twitter. The stock dropped almost 10% on Thursday to its lowest level since September 2020 after the automaker’s website showed it was offering $7,500 discounts on Model 3 and Model Y electric vehicles delivered in the United States this month.
Tesla’s stock has tumbled 36% so far in December, putting it on track for its worst-ever monthly performance. By comparison, Tesla’s shares dropped 22% in March 2020, when the coronavirus pandemic tipped financial markets into a tailspin. (Read More)
Rupee rises 5 paise to 82.79 against US dollar
The rupee appreciated by 5 paise to close at 82.79 against the US dollar on Thursday amid a weak greenback in the overseas markets.
Losses in domestic stocks and firm crude oil prices, however, restricted the rupee’s gain, forex dealers said.
The local currency opened higher at 82.78 at the interbank foreign exchange market after overnight losses in the greenback on improved risk sentiment.
The rupee moved in the range from 82.64 to 82.79 in the day trade before settling at 82.79 to a dollar, showing gains of 5 paise over its previous close.
The rupee had weakened by 14 paise to settle at 82.84 on Wednesday. (PTI)
Reliance Strategic Business Ventures buys 23.3% stake in US-based Exyn for $25 mn
Reliance Industries-backed Reliance Strategic Business Ventures (RSBVL) on Thursday acquired a 23.3% stake in Exyn Technologies (Exyn) for a total consideration of $25 million. This deal is expected to have synergies with Reliance’s investments and strategic initiatives in drone, industrial safety and security, and robotics areas. RIL announced the development in its regulatory filing. (Read More)
Amid Covid scare, IMA advises citizens to avoid gatherings, international travel
Amid a rise in Covid cases in some countries, The Indian Medical Association advised citizens to avoid public gatherings such as marriages, political or social meetings as well as international travel. In an advisory issued by the IMA, it also appealed to the citizens to take COVID-19 vaccines, including the precaution dose.
They also asked the citizens to follow Covid-appropriate behaviour such as using masks in public places and maintaining social-distancing norms to “overcome the impending Covid outbreak”. (Read More)
Auto parts makers see US, EU slowdown hurting exports
India’s auto component manufacturers expect export growth to be muted in the last quarter of the fiscal due to the recessionary environment in the US and the EU, while imports of auto parts, particularly electronic components, are expected to stay elevated as domestic demand rises.
In the first half of FY23, North America and Europe together accounted for over 63% of the sector’s total exports. A resurgence of covid-19 in China and Japan does not threaten major supply chain disruptions, although the industry remains cautious in its outlook. (Read More)
Aban Holdings IPO listing date today. Experts see ‘muted’ debut of shares
Shares of Aban Holdings Limited are going to list on Indian bourses today. As per the information available on the BSE website, effective from Friday, December 23, 2022, the equity shares of Abans Holdings Limited shall be listed and admitted to dealings on the Exchange in the list of ‘B’ group of securities. Aban Holdings shares will become available for trade-in special pre-open session today. (Read More)
Landmark Cars IPO listing today. Experts predict ‘flat’ debut of shares
Shares of Landmark Cars Limited are going to list on BSE and NSE on 23rd December 2022 i.e. today. As per the information available on BSE website, effective from Friday, December 23, 2022, the equity shares of Landmark Cars Limited shall be listed and admitted to dealings on the exchange in the list of ‘B’ group of securities.
According to stock market experts, the issue is fully priced with a PE multiple at around 28. They said that in the current market condition it won’t be fair to expect much from the public issue and expected a flat to discounted listing of the IPO. They said that in case of a weak market opening, we may see Landmark Cars shares listing at around 5-7 per cent discount. (Read More)
Yes Bank transfers 24% Dish stake to JC Flowers
In a fresh twist to the Yes Bank-Dish TV case, the private sector bank has transferred its 24.19% stake to JC Flowers Asset Reconstruction Co, along with the underlying loan to Subhash Chandra’s Essel group companies, the bank said in a stock exchange filing on Thursday.
The move is part of the lender’s move to transfer bad loans worth ₹48,000 crore from its books to the asset reconstruction company under the proposed 15-85 structure. With the transfer of Dish’s shares, it will have more flexibility to proceed with the recovery process. (Read More)
US stocks close in the red on Thursday on monetary tightening fears
Wall Street stocks tumbled Thursday, closing in a sea of red after data that indicated a strong labour market and better-than-expected economic growth.
The Dow Jones Industrial Average closed 1.1% down at 33,027.49, while the broad-based S&P 500 Index lost 1.5% to 3,822.39.
The tech-rich Nasdaq Composite Index plunged 2.2% to 10,476.12.
Calling the tumble a “Grinch selloff,” Edward Moya of the OANDA trading platform said the drop came as “better-than-expected US economic data supported the (Federal Reserve’s) case for more ongoing rate increases.”
The Fed has hiked its benchmark lending rate multiple times this year to rein in surging inflation.
Although it moderated its pace of rate increases this month, Fed Chair Jerome Powell has signalled that the central bank’s battle is not yet over, fueling market jitters. (AFP)
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